Traders-Blog.com

Today was a mixed day for the market, since the Dow lost about 0.2 percent due to a large decline in 3M, while the Nasdaq edged higher and added 0.3 percent. The Dow fell 16.26 points to close at 10,071.25. However, the technology index rose 4.77 points to close at 1,912.92, and the S&P closed at 1,145.98, after rising 3.36 points.

Texas Instruments Inc. reported net income of $411 million, or 24 cents a share, compared with last year’s profit of $367 million, or 21 cents a share. According to the company, its first-quarter profit was due to low manufacturing and operating expenses. Besides, Texas Instruments forecasted that second-quarter revenue would range between $3 billion and $3.24 billion, with earnings per share in the range of 25 cents to 29 cents.

3M Co. declined after the company posted its smallest sales gain in about 2 and half years. This drop contributed to a sharp decline in the Dow. Earnings reports from 3M decreased investors’ confidence about profit growth this year. Besides, economics reports showed a drop in consumer confidence and factory production since last week.

Susan Schmidt Bies, Federal Reserve Governor, said that the economy will continue to expand this year, although “inflation pressures have risen somewhat in recent months, longer-term inflation expectations appear to have remained well contained.” She believes that U.S. consumers will start saving more and consuming less as interest rates begin to rise again. Bies is a voting member of the Federal Open Market Committee (FOMC), which is expected to raise interest rates for an eight straight meeting on May 3.

Adobe Systems Inc. said that it plans to buy Macromedia Inc. for $3.4 billion in stock. This acquisition would challenge Microsoft Corp. in the market software. After the plan was announced Macromedia closed higher by 9.8 percent at $36.72. However, Adobe shares dropped 9.7 percent to close at $54.77. This drop in price shows investors’ concerns about the risks of joining two rival companies.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter